Egdon Resources - Wressle continues to deliver

Egdon Resources’ Wressle-1 well continues to produce above expectation, delivering 760–800bopd (228–240bopd net) during the six months to end January 2022. This high rate, combined with high commodity prices, has driven a 500% increase in revenues to £2.55m for the period, up from £0.42m in H121, and has made Egdon profitable for the first time since H111. With cash of £2.08m, the company says it is funded for near-term committed activities. Egdon will now look to increase Wressle production further. Other onshore drilling projects have been held up by planning permission refusals, while the UK government’s request to review shale gas extraction could bring the company’s shale assets back into play. Progress offshore has been affected by Shell’s withdrawal from the licences holding the Resolution and Endeavour gas discoveries. Egdon’s share price has performed strongly over the last six months, peaking at 4.2p/share in April and falling back over the last month.